WallStSmart

Shengfeng Development Limited Class A Ordinary Shares (SFWL)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 8894% more annual revenue ($51.49B vs $572.48M). ZTO leads profitability with a 17.9% profit margin vs 2.1%. SFWL trades at a lower P/E of 6.1x. ZTO earns a higher WallStSmart Score of 70/100 (B-).

SFWL

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 5.5Value: 8.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.56

ZTO

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.36
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SFWLUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$2.05

Current Price

$0.86

$1.19 discount

UndervaluedFair: $2.05Overvalued
ZTOUndervalued (+64.6%)

Margin of Safety

+64.6%

Fair Value

$70.28

Current Price

$22.28

$48.00 discount

UndervaluedFair: $70.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SFWL2 strengths · Avg: 10.0/10
P/E RatioValuation
6.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

ZTO5 strengths · Avg: 8.4/10
Altman Z-ScoreHealth
3.3610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

Free Cash FlowQuality
$2.79B8/10

Generating 2.8B in free cash flow

Areas to Watch

SFWL4 concerns · Avg: 3.3/10
EPS GrowthGrowth
3.8%4/10

3.8% earnings growth

Market CapQuality
$70.96M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : SFWL

The strongest argument for SFWL centers on P/E Ratio, Price/Book. Revenue growth of 11.6% demonstrates continued momentum.

Bull Case : ZTO

The strongest argument for ZTO centers on Altman Z-Score, P/E Ratio, Price/Book. Profitability is solid with margins at 17.9% and operating margin at 19.2%. Revenue growth of 22.0% demonstrates continued momentum.

Bear Case : SFWL

The primary concerns for SFWL are EPS Growth, Market Cap, Profit Margin. Thin 2.1% margins leave little buffer for downturns.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

SFWL profiles as a value stock while ZTO is a growth play — different risk/reward profiles.

ZTO carries more volatility with a beta of -0.22 — expect wider price swings.

ZTO is growing revenue faster at 22.0% — sustainability is the question.

ZTO generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (70/100 vs 43/100), backed by strong 17.9% margins and 22.0% revenue growth. SFWL offers better value entry with a 57.6% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Shengfeng Development Limited Class A Ordinary Shares

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

Shengfeng Development Limited, provides contract logistics services in the People's Republic of China. The company is headquartered in Fuzhou, the People's Republic of China.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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